From demand-side to supply-side regulation of government consultants: Recent trends in three OECD countries

Abstract

IMPACT Both practitioners and academics now grapple with concerns raised in legislatures and the media surrounding the use of consultants in the public sector. Issues around declines in public service capacity and conflict of interest have featured prominently in these concerns, along with value-for-money considerations. The relationship between consultants and government purchasers has mainly been governed through demand-side regulation designed to control government purchasing behaviour, including greater transparency and monitoring of contracts. While the USA has prohibited the use of consultants for ‘inherently governmental functions’, countries like the UK, Canada, and Australia have also aimed to create a more robust system of regulation by improving the quality of the advice, and avoiding conflict of interest through regulating the supply-side of consulting. This article discusses the recent moves adopted by these countries along this regulation trajectory, including implementing limits on the ‘revolving door’ of ex-government members transmuting into consultants immediately after leaving office, and proposals to replace the current weak certification of consultants with stronger forms of professional self-regulation and licensing.